patrick.net

Corntrollio - I'm not sure if the claim of 1997 prices should be inflation adjusted or not. But even if so, if you look at Thomas Wong's chart, the SJ index is now about 580, but the inflation line is 300. So if it will go back to that line, that's almost 50% drop.

Thomas, I'm sorry to hear about your friend. Like I said, not everyone has a job. Maybe that's part of the widening separation between Fortress and elsewhere - those with jobs are doing well or better than before, those without, not so much. So if the average salary is increasing, it will create demand in certain areas, but if the number of jobs is declining, the area with demand will shrink.
If the number of jobs decreases by a lot, the salary will ultimately decrease based on supply and demand, but for now at least it is still difficult to find skilled engineers, therefore they can command a good salary.

I consider the house to be an asset, as it has some value, and I could sell it. Unlike some clothes, even if I spent $1000 on a suit I couldn't really sell it for $1000 or even $500. If I thought my house (or any other asset) would drop in value by 50%, I would sell it. I don't think the house will drop that much, therefore I keep it. I wonder why people who think prices will drop by 50% would keep a house; I suppose that the enjoyment of ownership (which has been discussed before) outweighs the financial loss.